Tron founder Justin Sun pulled a significant portion of liquidity from the pools of the DeFi protocol Aave. This was noted by The Block analyst Igor Igamberdiev.
Looks like a stable bank run from @AaveAave v2
Mainly thanks to @justinsuntron😎 pic.twitter.com/CXSQeB30mB
— Igor Igamberdiev (@FrankResearcher) October 29, 2021
The withdrawal of liquidity led to higher interest rates. Sun could have taken this step due to a Twitter discussion about a vulnerability in Aave.
Earlier, yEarn.Finance founder Andre Cronje noted that «Aave уязвим для того же эксплойта», что затронул Cream Finance и привел к потере $130 млн.
According to a developer under the alias banteg, the vulnerability in Aave could have resulted in «убытками на 11-значную сумму».
Maybe don’t bad mouth other projects while sitting on an 11 figure vulnerability.
— banteg (@bantg) October 29, 2021
Later, banteg clarified that the exploit was possible «в течение 160 дней в прошлом, но не сейчас».
It has some very specific liquidity requirements. From my analysis, it was possible for a total of 160 days in the past, but not currently.
— banteg (@bantg) October 29, 2021
No developers published evidence of the vulnerability’s existence. After the discussion, project founder Stani Kulechov urged the crypto community to stand together and support one another.
Everyone in DeFi is in the same boat. We all want to make finance more fair, transparent and impactful to empower the next wave of users. Building DeFi is hard and communities have their differences. Lets work together, support each other and most importantly win together. WGMI❤️
— stani.eth (👻,🐻❄️) 👘 🪰 🇵🇹 (@StaniKulechov) October 29, 2021
«Все в DeFi находятся в одной лодке. Мы все хотим сделать финансы более справедливыми, прозрачными и эффективными […]. Давайте вместе работать, поддерживать друг друга и, самое главное, вместе побеждать», — написал он.
Representatives of Aave acknowledged concerns about the possible use of xSUSHI as collateral in the protocol. However, it is unclear whether this is the vulnerability the developers were referring to.
1/7 Today @gauntletnetwork submitted an AIP proposing to disable the borrow function for $xSUSHI and $DPI on V2 of the Aave Protocol as a precautionary measure. The AIP also will disable borrowing of AMM LP tokens on the Aave Protocol AMM Market as an extra safeguard. A thread👇
— Aave (@AaveAave) October 29, 2021
The Aave team proposed disabling functions related to xSUSHI as a precautionary measure.
«Члены сообщества внимательно следят за ситуацией и вместе работают над защитой экосистемы DeFi, продолжая обеспечивать безопасность протокола Aave», — говорится в сообщении.
In October, the lending platform integrated with the Avalanche blockchain.
Read about what Aave is in ForkLog’s educational cards:
Follow ForkLog news on Twitter!